You purchase one ONB 200 call option for a premium of $6. Ignoring transaction costs, the break-even price of the position is
A) $194.
B) $228.
C) $206.
D) $211.

Question

Quizplus · Accepted Answer

The break-even price for a call option is calculated by adding the premium paid to the strike price. Here, the strike price is $200 and the premium paid is $6, so the break-even price is $200 + $6 = $206.

You Purchase One ONB 200 Call Option for a Premium